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With scrutiny coming to bear on the mutli-level marketing (MLM)
company Herbalife, there are many who are asking questions about
whether or not these work from home “opportunities” are scams.

There are a number of legitimate businesses that allow you to get
into direct sales from your home. In my neighborhood alone, there
are several stay at home moms that sell a variety of products,
from Scentsy candles to Tupperware to costume jewelry. My own
mother sold Avon for years while I was growing up. Most of those
I know in these programs, though, don’t actively recruit others
to sell in an attempt to boost their own income; rather, they are
involved to get the products at a discount, and maybe make a few
bucks on the side.

Not all programs are as forgiving, though. In some cases, you
might find yourself buying large amounts of product, only to sit
on it. Even worse, you might get on a MLM company’s “fast track”
or pay for a special “program” that leaves you in debt — and
without any real results.

Before you sign up for an MLM program, consider these 5 signs
that you might be dealing with something that is more like a scam than a true home
business opportunity:

1. Focus is More on Recruiting than Selling

One of the first things to watch out for is a focus on recruiting
rather than selling. If you are being recruited in order to
recruit more people of your own, rather than actually focus on
selling the product, that might be a red flag. Consider whether
or not there is a lot of focus on getting you to recruit more
“team members,” instead of focus on acquiring customers. If the
recruits are the customers, that could be a
red flag.

2. Poor Training

What sort of training and support do you receive? How are your
questions answered? If you are asking tough questions, and they
are deflected with homilies on positive thinking, you could be
looking at a MLM scam. Also, consider the training situation. Are
you provided with actual business techniques and support? If the
training consists of how to convince recruits, or tips on selling
to friends and family, your “home business opportunity” might
actually be a work at home scam.

3. Pressure to Pay for More

Are you being pressured to pay for more product? You might be
asked to join a “fast track” or become “elite” by purchasing a
great deal of inventory all at once. Or, you might be pressured
into buying an expensive business package in order to get the
business support you need. If you are asked to pay for extra
training (beyond attending an annual conference or convention) on
a regular basis, or if you are asked to pay for basic office
supplies, you might be in trouble.

Be especially wary of those that ask you to put your costs on a
credit card, or encourage you to take a home equity loan or line
of credit to pay for this “business investment.”

4. Sales Tactics Brought to Bear on You

Do you feel as though you are the subject of a
high-pressure sale when you talk to the MLM representative? You
might be told that you have to make a decision right now in order
to get a good deal on the initial kit, or to buy in at a
“special” price, it could be a scam. Most legitimate companies
allow you to talk it over with your family, or sleep on your
decision.

5. Seems Too Good To Be True

As with everything in life and in purchases, you need it to pass
the too good to be true “smell test.” Are the claims about the
product outrageous and hard to really prove? Is there are a lot
enthusiasm about the “amazing” program, without much to back it
up? Watch out for anything that seems too good to be true.
Chances are that it’s actually a scam.